Financing a Jimmy John's with an SBA loan
Since FY2020, 34 Jimmy John's locations changed hands on an SBA 7(a) loan. Here is what those deals looked like, what the brand costs to open, which lenders wrote the loans, and where the brand stands with the SBA.
Jimmy John's franchising: franchising.inspirebrands.com
What a Jimmy John's deal looks like
Jimmy John's is an established brand in the SBA loan file: 34 acquisitions cleared underwriting in the last five years. The median loan was $570,000 at 9.50 percent. Amortized over 10 years, that is about $7,376 a month, or $88,508 a year in debt service. SBA's 10 percent minimum equity injection on a deal that size is roughly $63,333 of buyer cash, some of which a seller note on standby can sometimes cover.
Illustrative only: the median loan is not a purchase price, and every deal differs. Model your own in the deal analyzer or the DSCR calculator.
7(a) or 504 for a Jimmy John's?
Jimmy John's is typically a leasehold business: the value is goodwill, equipment, and the brand, not real estate. That points to an SBA 7(a) loan, usually amortized over 10 years. The 504 program, which finances owner-occupied real estate, is rarely the fit here unless the deal happens to include a building. Model the payment in the 7(a) calculator and check coverage in the DSCR calculator.
What it costs to open a Jimmy John's
These are Jimmy John's's own franchise terms, set by the franchisor and separate from the SBA loan. They matter to a buyer because the franchise fee and the build-out are part of the project the loan has to cover, and lenders weigh the net-worth and liquidity minimums when they size a deal.
- Total initial investment
- $361,200 to $674,200
- Initial franchise fee
- $35,000
- Ongoing royalty
- 6% of gross sales
- Net worth required
- $1,000,000
- Liquid capital required
- $200,000
Quick-service restaurant (sandwiches), figures from the 2024 FDD. Sources: Franchise Chatter — Jimmy John's FDD Talk 2024 review (Item 5/7, royalty), Wolf of Franchises — Jimmy John's franchise (net worth, liquidity, fee). Franchise economics are drawn from each brand's public Franchise Disclosure Document (FDD Items 5 and 7) and reputable third-party franchise databases, compiled for independent editorial reference. The Closing Binder is not affiliated with, endorsed by, or sponsored by any franchisor listed. Franchise fee, investment, royalty, and net-worth figures are set by the franchisor and change with each FDD; confirm current terms in the brand's latest FDD before relying on them.
Lenders that actually write these
The banks below approved the most Jimmy John's acquisitions in the file. A lender that has funded this brand before is the fastest path through underwriting.
- Live Oak Banking Company8 Jimmy John's loans
- BankVista2 Jimmy John's loans
- Southern Bank2 Jimmy John's loans
- United Business Bank2 Jimmy John's loans
- 21st Century Bank1 Jimmy John's loan
SBA conditions on this brand
When the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Option to Assume Lease may not be executed.
Every franchise the SBA will finance carries an entry in its directory, and some carry conditions like this one about how the real estate and the lease may be held. A lender has to clear these before funding, so they are worth reading before you make an offer.
Frequently asked questions
How much does it cost to buy a Jimmy John's franchise?
Opening a Jimmy John's takes a total initial investment of about $361,200 to $674,200, including a $35,000 initial franchise fee, per the brand's FDD. Buying an existing location is priced differently: the median SBA 7(a) acquisition loan for Jimmy John's was $570,000 in the federal loan file.
Can you buy a Jimmy John's with an SBA loan?
Yes. 34 Jimmy John's locations were acquired with SBA 7(a) financing since FY2020, and the brand is listed in the SBA Franchise Directory. The directory attaches a lender condition to this brand, so a lender clears that before funding.
How much do you need for a down payment on a Jimmy John's?
SBA requires a minimum 10 percent equity injection. On the median Jimmy John's loan of $570,000, that is roughly $63,333 of buyer cash, though a seller note kept on full standby can cover part of it. The rest is financed over about 10 years, around $7,376 a month at the median rate.
Which lenders finance Jimmy John's acquisitions?
Live Oak Banking Company, BankVista and Southern Bank wrote the most Jimmy John's acquisition loans in the federal file. A lender that has funded the brand before knows its franchise agreement and tends to move faster. See the full lender detail above.
Other restaurant brands buyers finance
Loan counts, median size, median rate, and lender ranking are computed from the SBA 7(a) FOIA file, change of ownership approvals, FY2025 to FY2026 Q3, as of June 30, 2026. Eligibility, the identifier code, and any conditions are from the SBA Franchise Directory, effective August 11, 2026. Franchise cost figures are from Jimmy John's's public FDD and third-party franchise databases. We are not affiliated with, endorsed by, or sponsored by Jimmy John's or its franchisor, and directory listing is not an endorsement of any individual deal. Methodology.